Completion of Acquisition of Shares in Shin Nippon Machinery Co., Ltd. (Becoming a Subsidiary) and Notice Regarding Revision of Full-Year Consolidated Performance Forecast and Dividend Forecast

Torishima Pump Mfg. Co., Ltd. (hereinafter, "the Company") announces that, as disclosed in the "Notice Regarding Acquisition of Shares in Shin Nippon Machinery Co., Ltd. (Subsidiary) and Change in Specified Subsidiary" dated February 10, 2026, all procedures for the acquisition of shares in Shin Nippon Machinery Co., Ltd. (hereinafter, "Shin Nippon Machinery") were completed on July 1, 2026, and the company has become a consolidated subsidiary.

By making Shin Nippon Machinery a wholly-owned subsidiary, we will integrate the complementary product portfolios and technological capabilities of both companies to strengthen our competitiveness in the decarbonization field and the power generation market, as well as expand our global sales and service network, thereby promoting the sustainable growth of the entire group.

In addition, we hereby announce that we have revised our full-year consolidated performance forecast and dividend forecast for fiscal year 2026 (ending March 31, 2027) in conjunction with this matter.

[IR Information Regarding This Matter]

● Revision of Consolidated Performance Forecast for Fiscal Year 2026 (Ending March 31, 2027): [Explanation Video] [PDF Document]

1. Regarding the Revision of Full-Year Consolidated Performance Forecast

(1) Revision of Full-Year Consolidated Performance Forecast for Fiscal Year 2027 (April 1, 2026 - March 31, 2027)

(Unit: Millions of yen, yen per share)

(2) Reason for Revision

Sales, operating income, and ordinary income are expected to increase due to the consolidation of Shin Nippon Machinery Co., Ltd. as a consolidated subsidiary. As Shin Nippon Machinery is currently a company with a December closing date, the impact on the current period will be for six months.

Furthermore, due to the expected occurrence of special profit accompanying the acquisition of the company, net profit attributable to parent company shareholders is also expected to increase. Based on these results, the full-year consolidated performance forecast will be revised upward.

2. Performance Status of Shin Nippon Machinery Co., Ltd. and Impact on the Company's Performance Due to Consolidation

Shin Nippon Machinery's full-year performance forecast for fiscal year 2026 projects steady progress as planned, with sales of 18.3 billion yen, operating income of 2.2 billion yen, and ordinary income of 2.4 billion yen. In fiscal year 2026, only the second-half performance of Shin Nippon Machinery after closing will be reflected in the Company's consolidated sales, operating income, and ordinary income. As the large-scale project for the Middle East, originally planned for the second half, was realized in June 2026, the majority of sales and profits for the current fiscal year will be recorded in the first half, with a limited impact on the current period's sales, operating income, and ordinary income forecasts. From fiscal year 2027 onwards, it will be consolidated on a full-year basis as usual.

On the other hand, Shin Nippon Machinery's first-half performance for fiscal year 2026 will be recorded as part of negative goodwill. The special profit, including this negative goodwill, is expected to be 3.2 billion yen. There are no changes to the Company's original performance plan for sales and operating income, excluding the impact of Shin Nippon Machinery's performance.

Furthermore, Shin Nippon Machinery's order backlog of 20.5 billion yen as of the closing date of July 1 is expected to be inherited by the Company group.

Additionally, a review of the medium-term management plan "Beyond110," which concludes in fiscal year 2029, is scheduled to be conducted.

(Note) The performance forecasts above are based on information available to the Company as of the date of announcement of this document, and actual performance may differ from forecasts due to various future factors.

3. Revision of Dividend Forecast for Fiscal Year 2027 (Interim and Year-End)

As the acquisition of shares in Shin Nippon Machinery was completed on July 1, 2026, and the performance forecast was revised upward, the interim dividend forecast for fiscal year 2027 and the year-end dividend forecast for fiscal year 2027, announced on May 14, 2026, will be revised from 32 yen to 34 yen, and the annual dividend forecast will be revised from 64 yen to 68 yen, respectively.